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SOUTH AFRICA: Gauteng Minority Cabinet Unveiled, FinMin Vows To Reduce Debt

SOUTH AFRICA
  • Gauteng Premier Panyaza Lesufi walked away from power-sharing talks with the Democratic Alliance (DA) and unveiled a minority provincial cabinet after postponing the announcement three times. The cabinet includes representatives of the IFP, Rise Mzansi and the PA, with the ANC taking the remaining seven cabinet positions. This means that the cabinet will be supported by just 32 out of 80 members of the provincial assembly, which may force Lesufi to seek ad hoc agreements or some wider supply-and-confidence deal in order to be able to adopt legislation.
  • Finance Minister Enoch Godongwana reaffirmed that the authorities are determined to reduce public debt, seeking to reassure investors during the first days after his reappointment. Godongwana noted that the government wants to "reach a peak in the next financial year in terms of the debt-to-GDP ratio." We may hear more details about the new government's plans after its first meeting next week and the presentation of its policy agenda in the National Assembly the following week.
  • SARB Governor Lesetja Kganyago said that the G20 Common Framework "sounded great in design" but "it is too slow" and "is not quote working for the countries that are in distress." The official added that the countries in need of debt restructuring lack the capacity to negotiate with "well-resourced" creditors.
  • South African will release electricity production/consumption data for the month of May at 12:00BST/13:00SAST.
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  • Gauteng Premier Panyaza Lesufi walked away from power-sharing talks with the Democratic Alliance (DA) and unveiled a minority provincial cabinet after postponing the announcement three times. The cabinet includes representatives of the IFP, Rise Mzansi and the PA, with the ANC taking the remaining seven cabinet positions. This means that the cabinet will be supported by just 32 out of 80 members of the provincial assembly, which may force Lesufi to seek ad hoc agreements or some wider supply-and-confidence deal in order to be able to adopt legislation.
  • Finance Minister Enoch Godongwana reaffirmed that the authorities are determined to reduce public debt, seeking to reassure investors during the first days after his reappointment. Godongwana noted that the government wants to "reach a peak in the next financial year in terms of the debt-to-GDP ratio." We may hear more details about the new government's plans after its first meeting next week and the presentation of its policy agenda in the National Assembly the following week.
  • SARB Governor Lesetja Kganyago said that the G20 Common Framework "sounded great in design" but "it is too slow" and "is not quote working for the countries that are in distress." The official added that the countries in need of debt restructuring lack the capacity to negotiate with "well-resourced" creditors.
  • South African will release electricity production/consumption data for the month of May at 12:00BST/13:00SAST.